married taxpayers filing jointly may exclude up to 1,000,000, in gain upon the s
ID: 2793913 • Letter: M
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married taxpayers filing jointly may exclude up to 1,000,000, in gain upon the sale of a residential property which would they have lived in for 2 years for the last 5 years 112Income tax-B42B:r ent/4392091/Niew B 428:03 (Online); Fall 2017 Melssa Greenhab ntent Discussions Quizzes Assignments Calendar My Grades Course Tools BYUI Tools Help ble of Contents Lesson 12 12 Income tax 12 Income tax 12 Income tax st. Length: 20000 Melissa Greenhalgh: Altempt 1 Question 5 (1 point) The general formula for determining the amount of gain on the sale of a property which we discussed in class is the sales price minus the basis where age 1: A) The sales price is total paid in cash and loans by the buyer B) The sales price is the total of the cash less property taxes for the prior two years C) The basis is the original cost plus improvements less depreciation. D) The sales price for loan purposes is different from the actual sales price. E) A & C, but not B & tD Quiz StartedExplanation / Answer
OPTION E) A & C BUT NOT B & D
SALE PRICE IS TOTAL PAID IN CASH AND LOANS BY THE BUYER AND THE BASIS IS ORIGINAL COST PLUS IMPROVEMENTS LESS DEPRECIATION.
EXPLANATION : SALE PRICE MEANS THE TOTAL AMOUNT THE BUYER WILLING TO PAY THE SELLER FOR THE PROPERTY. IT INCLUDES CASH PAID AND BALANCE PAID AS LOAN AMOUNT BY BUYER TO SELLER.
HERE THE COST PRICE BASIS IS THE ORIGINAL COST OF ASSET iNCLUDES THE IMPROVEMENTS OF ASSET AND MINUS THE DEPRECIATION OF THE ASSET
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